ETB to Give Ola Capital Injection in 2Q06

Colombian municipal telco Empresa de Telecomunicaciones de Bogotá (ETB) plans to provide mobile operator Colombia Móvil (Ola) with a fresh injection of capital, ETB president Rafael Orduz was quoted as saying by news agency Colprensa.

ETB is currently reviewing Ola's finances, and will provide the capital in question when it becomes necessary. "For now, Ola's budget is fine," said Orduz. There is speculation that the funds will be disbursed in the second quarter of 2006.

"A new injection of capital would consist of a debt-for-equity swap with ETP and [Ola co-owner] EPM, as we did last year," he added.

Orduz also emphasized that Ola will not be sold. It is, however, open to a strategic partner, whose identity will supposedly be revealed mid-year.

BNamericas.com"

Posted to the site on 18th February 2006